SENATE JOINT MEMORIAL 14

46th legislature - STATE OF NEW MEXICO - first session, 2003

INTRODUCED BY

Joseph J. Carraro









A JOINT MEMORIAL

REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL, THE DEPARTMENT OF FINANCE AND ADMINISTRATION, THE STATE INVESTMENT COUNCIL, THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION AND THE EDUCATIONAL RETIREMENT BOARD TO APPOINT A TASK FORCE TO STUDY THE SAFEGUARDS IN PLACE THAT PROTECT THE FISCAL INTEGRITY OF THE STATE PERMANENT FUNDS.



WHEREAS, the corpus of New Mexico's land grant permanent funds and the severance tax permanent fund is approximately ten billion dollars ($10,000,000,000); and

WHEREAS, the distributions from these funds, now and in perpetuity, are an integral and necessary ingredient for the future prosperity of New Mexico and its citizens; and

WHEREAS, the governor has proposed investing up to two hundred million dollars ($200,000,000) from the permanent funds in New Mexico businesses as an economic development initiative; and

WHEREAS, the corpus of the two retirement funds for New Mexico public employees is more than thirteen billion dollars ($13,000,000,000); and

WHEREAS, the actuarial soundness of the retirement funds is absolutely necessary in order to maintain a healthy work environment in the public sector; and

WHEREAS, the losses suffered by New Mexico's funds point out the fact that essential safeguards must be in place to protect the fiscal integrity of the permanent funds; and

WHEREAS, a task force composed of legislators and experts should be appointed to examine the controls and safeguards applicable to investments of the permanent funds;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the New Mexico legislative council be requested to appoint members of the legislature to a task force to examine the controls and safeguards applicable to investment of New Mexico's permanent funds; and

BE IT FURTHER RESOLVED that the department of finance and administration, the state investment council, the public employees retirement association and the educational retirement board each be requested to appoint members to the task force; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the New Mexico legislative council, the department of finance and administration, the state investment council, the public employees retirement association and the educational retirement board.

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